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Keep your Made in USA claims red, white, and true

Lesley Fair
There sure are a lot of seals out there. The British singer. The Navy special ops unit. The aquatic mammal. But the seals that matter to the FTC are certifications that convey representations consumers might not be able to evaluate for themselves. If your company makes Made in the USA claims, you’ll want to “Get Closer.” (And yes, that was a hit by 70s folk rockers, Seals and Crofts.) Ohio-based Made in the USA Brand markets a U.S.-origin seal...

Putting the “mod” in order modification

Kenneth Libby, Bureau of Competition
Back in 1998, the must-have toy was a Furby, and if you were a parent with a kid of a certain age, you had to find one. In those days, Toys “R” Us was the nation’s largest toy retailer, and the company attracted antitrust attention when it announced that it would stop carrying toys made by any manufacturer that sold the same toys to discount club stores, such as Costco. That policy would have prevented nearby club stores from carrying the same...

In-app and unapproved: FTC says Amazon charged parents' accounts without their OK

Lesley Fair
If there’s one theme that runs through decades of FTC law, it’s that companies need consumers’ informed consent to bill their accounts. That was true in the early days of mail order. It carried through to online shopping. And it remains the law for mobile devices, including in-app purchases. The FTC’s lawsuit against Amazon alleges the company didn’t honor that elementary principle. As a result, the FTC says thousands of parents were billed for...

Who profits from cramming? FTC challenges T-Mobile's role in bogus billing

Lesley Fair
It was an all-too-common occurrence. People’s mobile phone bills included unexplained – and unauthorized – monthly charges. It’s called cramming and the FTC has brought a series of cases against companies that had fees for ringtones, horoscopes, “love tips,” etc., placed on cell phone bills without consumers’ consent. The crammers took a chunk of the cash, but you might be surprised to learn who the FTC says pocketed a 35-40% piece of the action...

FTC to L’Oréal: Scientific claims need proof that’s more than just skin deep

Lesley Fair
When ads for beauty products convey subjective claims – for example, L’Oréal’s long-standing “Because I’m worth it” tagline – it’s unlikely consumers would think statements like that are supported by science. (It’s hard to imagine a testing protocol that could establish whether or not we’re worth it.) But flip through a magazine and it’s apparent that test tubes are overtaking powder puffs in how some cosmetics are marketed. When companies tout...

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Mike Moiseyev, Bureau of Competition
“The clock” is a central part of a merger lawyer’s life. HSR merger review is all about managing the clock effectively. Here are some things we’ve been known to say: Is the clock running? When does the clock start? How much time is on the clock? Conducting a merger investigation under the Hart-Scott-Rodino Act requires that we always be aware of the timing, and where we are on the clock. Once the parties to a proposed transaction have filed an...

Deceptive mortgage ads hit close to home

Lesley Fair
The headline read ZIP. ZERO. NADA. In big print, the ads also said 0 money down* and 0 for paid closing costs* . Heritage Homes didn’t include ZILCH, BUPKES, or (for “Buffy the Vampire Slayer” fans) THE BIG GOOSE EGG, but the FTC says the meaning to prospective buyers was clear. So how much truth was in that across-the-board “zero” claim? According to the FTC’s complaint: Zip. Zero. Nada. Through newspaper ads, flyers, and direct mail, the...

Where did I put those keys?

Lesley Fair
If it hasn’t happened yet, it’s only a matter of time. You walk into a room – say, to get your sunglasses – and then can’t remember why you’re there. So it’s no wonder that claims for BrainStrong Adult, a dietary supplement advertised on TV, online, and through an active social media presence, caught consumers’ eye. Ads said that Brain Strong Adult “helps protect against normal cognitive decline as we age” and is “clinically shown to improve...

Hat trick? FTC charges violations in auto loan servicing, debt collection, credit reporting

Lesley Fair
Sometimes good things come in threes, like Musketeers, Bronte sisters, and Stooges. (Shemp doesn’t count.) But the FTC’s complaint against Consumer Portfolio Services charges the company with three distinct sets of violations – unlawful auto loan servicing, illegal debt collection, and violations of the Fair Credit Reporting Act’s Furnisher Rule – all of which spelled triple trouble for consumers. But there’s relief on the way in the form of a...

Lice, Lice, Baby

Lesley Fair
Dare us to describe the legal ramifications of a recent advertising settlement involving health claims in the style of a cringeworthy rap from 1990? Cue up the bass line ‘cause here we go. Yo, FTC, let’s kick it. Lice, Lice, Baby. Lice, Lice, Baby. Advertisers, stop! Support your claims with back-up Or face an enforcement crack-up. You need proof. There’s no exception. The law bans every kind of deception. To say your products prevent infestation...